Risky business: an uncertain future for biodiversity conservation finance through REDD+

Reducing Emissions from Deforestation and forest Degradation and through the conservation, sustainable management, and enhancement of carbon stocks (REDD+) offers unprecedented potential funding for forest conservation and associated biodiversity. However, as a growing number of biodiversity conservation projects link with carbon emissions mitigation efforts, they might also be exposed to significant financial risks. REDD+ projects currently face uncertainty over future demand for carbon credits, the potential for inconsistent donor support in the long‐term, carbon market volatility, investor preference for low‐cost emissions mitigation over cobenefits, and the possibility of a short‐lived REDD+ mechanism. The private sector is aware of the associated financial risks, which remain largely unaddressed within the conservation literature. Biodiversity conservationists need to identify a balance between maximizing near‐term REDD+ opportunities and insulating themselves from long‐term financial risks. We describe some of the prospective financial risks for biodiversity conservation efforts linked with REDD+, and propose initial strategies for financial resilience.